Pakistan’s Healthcare System Struggles Amid New Taxation Measures

The imposition of new taxes on the already troubled healthcare sector in Pakistan has drawn widespread criticism. The worst hit has been the pharmaceutical industry.

The chief executive officer of a Karachi-based pharmaceutical firm, Mohammad Bilal, spoke of the huge blow the recent government policies had on the medicine sector. “The tax imposed on medicines has halted 50 per cent of pharmaceutical production.”. Today, it has become impossible to manufacture as the distributors have suffered huge losses, hence supply has stopped. The government has imposed taxes on bottles, foils and every material. Distributors are laying off employees. Now, medicines are becoming expensive for ordinary people,” said Bilal.

The impact on the common man is immense with the low average salaries multiplying the effect of the economic woes. Bilal said, “Here, the average salary is PKR 25,000. The retail price of antibiotics that was PKR 180 has now become PKR 300. The pharmaceutical industry is in crisis. If I get a good opportunity, I will leave Pakistan.”.

The ripple effect of such tax hikes has made items like food and fuel costlier, adding to the woes of the citizens. “The government is making everything dear. Petrol, atta, sugar everything has become expensive. Despite the public awareness of how the government came into power, there is a strong call for it to take action in the interest of its citizens,” he added.

The pressure on the Pakistan health-care system is at its peak, manifested in the form of inadequate infrastructure, unequal distribution of health facilities, and shortages of medical supplies and proficient people. Crowding and below-average quality are constant problems in public hospitals. Problems of this nature are now further enhanced by the new taxes on medicines and health services, ultimately making access to health facilities even more unaffordable for those who need essential treatments.